Economic Definitions

Hello Chief Luthayi high School 😁😍😍😍

First 1Gross Domestic Product

•is the total value of all final goods and services that are produced within borders of a country

2. Gross Domestic Expenditure

•this is spending within borders of a country

3. Gross National Income

•Income received by permanent resident of a country

4. Factors of production

•These are elements that are needed in a production process

5. Natural resources

•Are resources that occur naturally hmmmmmm ohhhhhhh GOD yeah hell!!!!!!!!!!!!!!!

6. Labour

•Is human physical or mental effort needed in the production process

7. Capital

•Money used to start a business

8. Entrepreneur

•a person who combines capital, labour and Natural resources into a profitable business used to produce useful goods and services

9Capital Goods

•Goods that are used to produce other goods

10. Consumer Goods

•Are goods that satisfy needs and wants

11. Durable Goods

•are goods that last for a long period of time

12Semi durable Goods

•Are goods that last for a while

13 Non-Durable Goods

•Are goods that do not last

14 Services

Are not tangible but are able to satisfy needs or wants

15Gross Fixed Capital Formation

•Is where there is an increase in a country's capital stock

16mobility of Factors of production

•The movement of factors of production from one location to another

17Gross profit

•the difference between sales and cost of sales

18break even point

A point where expenses are equal to income

19Capital Deepening

•occurs when the amount per worker is increased

20Capital widening

Occurs when the capital stock in increased to accommodate an increasing labour force